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IPFS News Link • Stock Market

Iron Ore, Rebar Crash Into Bear Market, Baltic Dry Dead-Cat-Bounce Dies

• Zero Hedge

Real demand for steel in China dropped at least 7% in April from the year before, according to Citigroup's Tracy Liao estimates, so it should not be a total surprise that the frenzied speculative buying in Iron Ore, Rebar, and various other industrial metals in China has crashed back to reality as volumes plunge, dragging The Baltic Dry Freight Index with it as yet another government-manipulated 'signal' collapses into a miasma of malinvestment and unintended consequences.

As The Wall Street Journal reports, to the extent that China's industrial recovery explains why iron ore and steel prices have jumped this year, China's latest trade data served as a reminder of how brittle this reason is.

China's steel net exports rose 8.8% in April from a year before and 9.4% between January and April from a year ago.


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